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DECISION No. 52/2003/QD-BTC OF APRIL 16, 2003 PROMULGATING THE REGULATION ON CONDITIONS FOR SETTING UP OUTSIDE-BORDER GATE SITES FOR CUSTOMS CLEARANCE AND SITES FOR GOODS INSPECTION AND ON MANAGEMENT OF THEIR OPERATION

THE MINISTER OF FINANCE

Pursuant to Article 17 of Customs Law No. 29/2001/QH10 passed by the National Assembly on June 29, 2001;

Pursuant to the Government's Decree No. 101/2001/ND-CP of December 31, 2001 detailing the implementation of a number of articles of the Customs Law regarding customs procedures as well as customs inspection and supervision regime;

Pursuant to the Government's Decree No. 86/2002/ND-CP of November 5, 2002 prescribing the functions, tasks, powers and organizational structures of the ministries and ministerial-level agencies;

In furtherance of the Prime Minister's opinions in the Government's Official Dispatch No. 1697/CP-KTTH of December 31, 2002;

At the proposal of the General Director of Customs,

DECIDES:

Article 1.- To issue together with this Decision the Regulation on conditions for setting up outside-border gate sites for customs clearance and sites for goods inspection and on management of their operation.

Article 2.- This Decision takes effect 15 days after its publication in the Official Gazette. To annul the Customs General Director's Decision No. 1495/2001/QD-TCHQ of December 26, 2001 on outside-border gate sites for customs clearance and sites for goods inspection and other relevant guiding regulations.

Article 3.- The General Director of Customs, the heads of the units under or attached to the Ministry of Finance, the People's Committees of the provinces and centrally-run cities as well as concerned organizations and individuals shall have to implement this Decision.

For the Finance Minister

Vice Minister
TRUONG CHI TRUNG

REGULATION ON CONDITIONS FOR SETTING UP OUTSIDE-BORDER GATE SITES FOR CUSTOMS CLEARANCE AND SITES FOR GOODS INSPECTION AND ON MANAGEMENT OF THEIR OPERATION

(Issued together with the Finance Minister's Decision No. 52/2003/QD-BTC of April 16, 2003)

I. GENERAL PROVISIONS

Article 1.- The setting up of customs clearance sites must ensure the following principles:

1. To clear the import and export goods congestion at border gates, to facilitate import, export and investment activities as well as modernize the customs management.

2. The to be-set up outside-border gate sites for customs clearance must not be too far from border gates and have adequate necessary conditions for the performance of customs inspection, supervision and control, rendering smuggling and/or trade fraud impossible.

3. Localities which set up outside-border gate sites for customs clearance must have high import and export turnover, where many enterprises register for customs clearance for import and export goods at these sites so that the sites can efficiently and sustainably operate.

Article 2.- Outside-border gate sites for customs clearance mean the places where the works related to the customs procedures prescribed in Article 16 of the Customs Law are performed.

Outside-border gate sites for customs clearance include headquarters of outside-border gate Customs Sub-Departments and the systems of warehouses and storing-yards meeting the goods storage requirements as well as customs inspection and supervision requirements.

Article 3.- Outside-border gate sites for import and export goods inspection mean the places where the customs offices conduct the actual import and export goods inspection, including:

1. Warehouses and storing-yards belonging to the outside-border gate sites for customs clearance mentioned in Article 2.

2. Concentration sites for goods inspection mean the places where import and export goods are gathered for inspection by customs offices (including cargo-for-shipment (CFS) stations where many export goods lots are gathered into large lots for export and many owners' import goods lots sharing one common bill of lading are delivered).

3. Works' sites mean the places where imported equipment, machinery and supplies are gathered for the construction of factories or works.

4. Places of manufacture mean manufacturing factories or workshops of enterprises (applicable to import and export goods items with different requirements on the preservation, packaging, hygiene, technology and safety; and factories turning out large and permanent volumes of import and export goods).

II. CONDITIONS AND PROCEDURES FOR SETTING UP OUTSIDE-BORDER GATE SITES FOR CUSTOMS CLEARANCE

Article 4.- Conditions for the setting up:

Organizations which apply for the setting up of outside-border gate sites for customs clearance (in this Section II, they are called the sites for short) must be enterprises set up and operating under the provisions of law. Enterprises requesting the setting up of the sites must fully meet the following conditions:

1. Having business registration for import and export goods forwarding and transportation;

2. Obtaining the approval from the People's Committees of the provinces and centrally-run cities where the sites are set up, and filling their written requests to the Ministry of Finance;

3. Areas for setting up the sites must fully meet the following conditions:

3.1. Being in places where traffic is convenient, no more than 30 km from ports or airports;

3.2. Being in places where many enterprises engaged in import and export activities are concentrated (upon the setting up, the sites are capable of attracting at least 30 enterprises permanently registering for customs clearance).

3.3. Warehouses, storing-yards and support works must meet the requirements on actual goods inspection and supervision by customs offices, the requirements on security, fire prevention and fighting safety, and environmental sanitation; have separate offices for the customs offices to strictly implement the operational process.

3.4. Having surrounding walls to ensure the requirements on management and supervision by the customs offices.

3.5. Having material and technical bases as well as transport means suitable to the requirements on goods loading, unloading, storage and preservation as well as inspection and supervision by customs offices.

3.6. Being managed by means of computers which are connected to the customs offices' computer networks.

3.7. The sites must have adequate conditions for the customs offices to install inspection and supervision machinery and equipment (such as detectors, cameras,...).

Article 5.- Dossiers of application for the setting up comprise:

1. The application for setting up the site: 2 originals;

2. Business registration certificate: 1 copy;

3. Construction economic and technical study report: 1 copy;

4. Operation Regulation: 1 original;

5. The provincial/municipal People's Committee's written request: 1 original;

6. Lawful documents on the right to use land for the construction of site: 1 copy.

Article 6.- Procedures and competence to decide on the setting up:

1. Dossiers of application for setting up the sites shall be sent to the Customs Departments of the provinces, inter-provinces or centrally-run cities (hereinafter called the provincial/municipal Customs Departments for short).

1.1. The provincial/municipal Customs Departments shall evaluate the enterprises' requests. The evaluation contents include:

- Checking of dossiers;

- Actual survey of warehouses and storing-yards;

- Evaluation of the satisfaction of the conditions prescribed in Clause 3, Article 4 of this Regulation.

1.2. Within 15 working days after receiving the enterprises' complete and valid dossiers, the provincial/municipal Customs Departments shall complete the evaluation and report the results thereof, enclosed with the proposals on the arrangement of officials and public servants within the Departments' payroll for meeting the requirements on operation of the newly set up sites, to the General Director of Customs.

1.3. Within 10 working days after receiving the complete dossiers and written evaluations of the provincial/municipal Customs Departments, the General Director of Customs shall submit them to the Finance Minister for decision on the setting up of the sites. In case of refusal, the Finance Ministry shall reply in writing to the enterprises and provincial/municipal People's Committees.

2. Once a year or when detecting signs of law violation, the provincial/municipal Customs Departments shall inspect the observance of the customs legislation by enterprises permitted to set up and deal in these sites. If enterprises are detected to have violated the customs legislation, depending on the seriousness of their violations, they shall be handled according to law provisions or proposed to the General Department of Customs for submission to the Finance Minister for withdrawal of the decisions to set up the sites.

3. The Finance Minister shall decide on the withdrawal of the decisions to set up the sites in the following cases:

- Enterprises request in writing the termination of operation;

- Past the time limit of 6 months as from the date of issuance of the setting up decisions, enterprises fail to put the sites into operation without plausible reasons;

- Enterprises dealing in the sites violate the customs legislation as prescribed in Clause 2 of this Article;

- Enterprises are permitted to operate but fail to maintain the conditions prescribed in Clause 3, Article 4 of this Regulation.

4. Basing themselves on the scale of import and export activities, enterprises' proposals, the suitability to the geographical positions and conditions of operation of the sites, after obtaining opinions of the People's Committees of the provinces or centrally-run cities where the sites operate, the provincial/municipal Customs Departments' directors shall decide to permit the enterprises to narrow or expand the sites (to adjacent areas); the General Director of Customs shall permit the relocation or expansion of the sites ( to non-adjacent areas).

III. CONDITIONS AND PROCEDURES FOR SETTING UP OUTSIDE-BORDER GATE SITES FOR IMPORT AND EXPORT GOODS INSPECTION (hereinafter called the inspection sites for short)

Article 7.- Regarding concentrated goods inspection sites:

1. Conditions for the setting up:

1.1. Enterprises have business registration for import and export goods forwarding and transportation;

1.2. Areas for setting up the inspection sites must meet the conditions prescribed in Clause 3, Article 4 above.

2. Set of dossiers of application for the setting up: As prescribed in Article 5 above (except for the written requests of the provincial/municipal People's Committees).

3. Procedures for the setting up shall comply with the provisions of Article 6 above.

4. Competence to decide on the setting up: On the basis of the provincial/municipal Customs Departments' written evaluations and proposals, the General Director of Customs shall decide to set up the inspection sites.

Article 8.- For the inspection sites being works' sites or places of manufacture:

1. The directors of the provincial/municipal Customs Departments shall base themselves on the provisions of Clauses 3 and 4 of Article 3 above as well as relevant stipulations to issue decisions on recognition of such inspection sites.

The inspection sites being works' sites may operate only during the construction and formation of factories or works.

2. Procedures for recognition application:

- Enterprises shall file applications with the provincial/municipal Customs Departments. Such applications must clearly inscribe the particularities of goods, the volume of import and export goods, and time for recognition (for the inspection sites being works' sites).

- Within 3 working days after receiving the enterprises' valid applications, the provincial/municipal Customs Departments' directors shall issue documents to recognize the sites or reply to enterprises in case of refusal (clearly stating the reasons therefor).

IV. RESPONSIBILITIES OF ENTERPRISES, CUSTOMS OFFICES AND PEOPLE'S COMMITTEES OF THE PROVINCES AND CENTRALLY-RUN CITIES

Article 9.- Responsibilities of enterprises dealing in outside-border gate sites for customs clearance and sites for goods inspection:

1. To fully comply with the requirements on the setting-up conditions prescribed in Article 4 above;

2. To ensure goods status quo, customs sealing and shipping firms' sealing during the time the goods are kept at these sites;

3. To create favorable conditions for the customs offices to perform the function of State management over customs according to law provisions;

4. To fully observe the law provisions on customs procedures for import and export goods;

5. To take responsibility for the management of goods within the areas of the customs clearance sites and/or the goods inspection sites beyond the working time of the customs offices;

6. To take responsibility before the goods owners for the goods kept at the customs clearance sites and concentrated goods inspection sites;

7. To take responsibility before law if acts of smuggling or trade fraud of import and export goods occur within the areas of the customs clearance sites and/or goods inspection sites, which are managed and/or exploited by enterprises.

Article 10.- Responsibilities of the customs offices:

Areas inside the boundaries of the customs clearance sites and the goods inspection sites shall be the geographical areas of customs operation. The responsibilities of the customs offices are as follows:

1. In the working time, the customs offices shall have to:

a/ Carry out customs procedures for import, export, transshipped goods strictly according to law provisions;

b/ Conduct customs inspection, supervision and control of all activities related to import and export goods in such operation areas.

2. To coordinate with the functional agencies in performing the task of preventing and combating smuggling and trade fraud in areas other than the customs clearance sites and the goods inspection sites and outside the working time.

Article 11.- Responsibilities of the People's Committees of the provinces and centrally-run cities:

1. To select enterprises qualified to deal in customs clearance sites and be answerable for such selection. Upon the selection, the economic efficiency as well as managerial, inspection and control capabilities of the customs offices and other State management agencies must be taken into account, not requesting the unplanned establishment thereof (except for the provinces and cities having large ports and many industrial parks, other localities shall set up one site each if conditions permit).

2. To manage the operation of enterprises dealing in customs clearance sites strictly according to law provisions.

3. To direct the functional agencies situated in their respective localities to closely coordinate with one another in preventing and combating smuggle and trade fraud outside the customs clearance sites and the goods inspection sites; to take measures to ensure security, social order and safety, and create favorable conditions for the operation of the enterprises dealing in customs clearance sites, the importing and exporting enterprises and the customs offices.

V. IMPLEMENTATION PROVISIONS

Article 12.- Customs clearance sites and goods inspection sites set up before the date of promulgation of this Regulation may continue their operation but shall, within 6 months after this Decision takes implementation effect, have to add all conditions as prescribed in this Decision. Past the above-said time limit, if the enterprises fail to meet the prescribed conditions, their sites must terminate their operation.

For the Finance Minister

Vice Minister
TRUONG CHI TRUNG